Top 3 Pros and Cons of Employee Turnover

imagesWhen we hear the term “staff turnover,” we immediately think it’s a bad sign that a business is not doing well, or they don’t follow the best hiring processes. As a business advisor to small businesses for over 30 years, I can assure you that staff turnover can also be a good thing for your business.

 

 

 

Pros To Staff Turnover:

  • Fresh Ideas: When you hire new employees, they can bring fresh perspectives, new experiences and energy that could lead to innovative ideas. When they are not attached to the old ideas nor to the “way we do things” attitude, they can bring you insights you didn’t have before.
  • The 20% Rule: You know the saying: “20% of your staff do 80% of the work”. When you reward the 20% for their efforts, this can energize your workforce and strengthen your role as the leader and the balance of staff will either improve their performance or move on.
  • Avoid Complacency: When staff feel what they did yesterday is “good enough,” they have become complacent and this can be the enemy of every organization, fostering an environment of “status quo” and an aversion to risk-taking only leads to poor employee morale and increased employee sick time and poor job satisfaction.

Cons For Staff Turnover

  • Dismissal: It is never a pleasant thing having to dismiss an employee, but once you have determined employees are no longer fulfilling the role you hired them for, and you have given them ample opportunity to improve, it is time to save your business and let them go.
  • Rehiring: Hiring new staff ultimately costs money and time. To ensure you hire the right people from the start with the right skills who fit into the company’s culture, make sure you have a clear hiring process, with written job descriptions and defined roles and responsibilities. You should have an onboarding process and internal measurement and evaluation matrix to ensure they are performing the role you hired them for.
  • Train and Communicate: Invest time in training and communicating your expectations of them in their new role. Sometimes smaller businesses have a tendency to hire a person to perform a specific role, but then start loading them with responsibilities and tasks that are outside of that role. For example, asking the new sales person to design your brochures or write content is not realistic.

Your new hire will not know everything about the job in the first week, so do not set them up to fail – rather, give them clear examples of what you expect from them in a measurable and manageable document. Bearing that, if an employee has been with you for many years and is still not able to meet your expectations, then the right thing to do for both you and the company is to let them go.

Regardless of your hiring process, every business needs to have staff turnover as roles change and your business evolves. Don’t see it as a bad thing, or a good thing, but rather a “chance to grow.”

Do you think employee turnover can help or hinder your business?

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How To Find and Keep the Right People: Part 1- Finding The Right People

pgAs a business owner, I’ve had my fair share of experience in on boarding and exiting staff. One of the biggest challenges in business is finding the right people to help your business succeed. No matter the size, industry or type of company you run, this has proved to be a common problem that many business owners experience everyday all around the globe.

Today, most job postings are online, but knowing if you are posting in the right places to target the types of candidates you are looking for, is key to your success. I have outlined below a few key locations you might want to consider for posting your job.

Social Media
Social media is a great method for posting job ads online. This is a cost effective method that is sure to reach a wide audience. LinkedIn is one of the best platforms for either posting for free or taking advantage of their paid job-posting feature. LinkedIn is especially useful for attracting candidates who have an education and are searching for salaried careers rather than part time hourly work. If you are a B2C business you may also want to engage with your audience on Facebook or Twitter.

Indeed, Kijiji, Craigslist
Other forms of free online posting may include job boards like Indeed, Kijiji and Craigslist. These allow you to post to a wide range of audiences, but like social media you will have to filter through many irrelevant resumes of unqualified candidates before you find a qualified one.

University/College Career Sites
University and College Career sites are also another useful online option to consider. Your advertisements are sure to reach a variety of current students in a range of different studies. The downfall with posting in school career sites is in addition to those graduating students who are looking for full time work, you may also get students applying to full time positions when they still have years of their program to complete.

Placement Agency
There are currently a wide variety of placement or recruitment agencies, some of which even cater to specific industries. The good news is that they pre-screen, and interview your candidates so you are presented with only the best of the bunch. Downside is that this option can get very pricy.

Your Network
Think about all of your business contacts, colleagues, friends and even family. Cast your net and see if they know of anyone looking for the type of position you have available.

Business Website
Don’t forget to post on your own website in the careers section or a link on your contact us page to the job description. You have an audience, who is already familiar with your brand, let them know you are looking to hire new talent!

What it really comes down to is finding the best method that works for you and your business. Once you’ve found your method and are happy with your choice of potential candidates it is time to interview. How should you interview? What testing should you include in your recruitment process? Should you include testing? Stay tuned for part 2 of the How to Find and Keep the Right People blog series.